HSBC is to bring in a new pay policy reducing what its executive directors can earn by 7 per cent after bowing to shareholder concerns.

Europe’s biggest bank will also cut the cash given to its executive team in lieu of a pension from 50 per cent to 30 per cent of their salary, as well as making long-term incentives subject to a three-year forward-looking performance period.

The proposals were backed by 96 per cent of shareholders, who gave overwhelming support for chief executive Stuart Gulliver’s £7.3milion pay package for 2015, down from £7.61milion previously.

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The changes were proposed amid a rising tide of investor anger over boardroom remuneration, leading to big revolts at BP and Anglo American.

We had expected that the remuneration policy you approved back in 2014 would not need to be refreshed until it expired next year

HSBC chairman Douglas Flint

Earlier this week, a panel of leading City figures argued in a report that the system for rewarding executives at UK-listed companies was “not fit for purpose”.

HSBC chairman Douglas Flint said the board was “acutely aware” of the performance of its shares, which have fallen by more than one fifth since last year’s annual meeting.

He told investors: “We had expected that the remuneration policy you approved back in 2014 would not need to be refreshed until it expired next year.

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The policy will will reduce what the executive directors can earn by 7 per cent

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The decision was taken in response pressure from shareholders

“However, regulatory changes as well as responding to shareholder feedback have caused us to make some revisions to this and so we are bringing it back for your consideration this year. The impact of the new policy is to lower the maximum opportunity for the executive directors by around 7 per cent.”

Gulliver, said the global economic outlook was uncertain, but HSBC remained committed to paying higher dividends subject to long-term profitability.

He said: “By the end of 2017, we will have further simplified the organisation, addressed the biggest drags on our performance and refocused the business to capitalise on the opportunities we are privileged to have access to through our strong presence in Asia.”